The Place component of the marketing mix includes recognising where the product or service will be sold.
Aldi keeps its store formats easy to cut-off waste and keep expenses down. This implies Aldi can concentrate on offering its customers lowest possible prices for its products. When considering new store locations, Aldi takes into account:
- The number of people visiting an area as well as the demographic of the area – for example, the population of the area should be more than 30,000 people
- The position of store – Aldi focuses on edge of the town centre locations with good visibility from a main road and not too much competition
- The accessibility of the store and its public transport links
- The number of parking spaces available
Aldi has refined its business plan throughout the years to help keep those costs to a great degree lower guaranteeing an expanded circulation.
The insignificant item extend, useful store configuration and shortage of fleeting advancements other than the “Exceptional Buy” implies it is the straightforward no-frills distribution of markets.
An Aldi spokesperson said: “We’ve eliminated all costly extras and overheads by selecting only the best products in each category, displaying products in reusable crates and not giving out plastic bags, which encourages customers to recycle”.
“We concentrate on selling our select range of exclusive brands rather than spending money on customer loyalty programs or expensive point of sale displays.”
Aldi picks prime geographic areas, to guarantee it is effectively available. Stores regularly seem near to the next leading markets, yet outside of the occupied with strip malls, and have car parks, allowing for conveniences for consumers.
Aldi once seen as the underdogs of the supermarket chains are quickly becoming a driving force within the supermarket industry, setting benchmarks and global standards abroad.
Whilst the bigger supermarkets were traditional the price drivers Aldi is starting to have a positive effect for the consumer. Aldi’s target market is more refined and for the “Everyday Aussie”, their strategically placed stores, on the out skirts of city centres providing the link between distribution and consumption, making them a more attractive superstore.
Whilst Woolworths and Coles still have a major consumer pool, we are seeing changes in the way consumers receive and perceive the drivers in this industry.
*multiple source have been used throughout this blog, more information can be examined on the following links.